6 RETIREMENT EXPENSES : Budgeting For Things You Might Spend More On...
When it comes to retirement budgeting, a lot of expenses might fall away, naturally. However, many expenses will increase, and these should not be overlooked.
1. Healthcare
Medical Aid inflation is a very real threat to your retirement savings. You could also expect to spend more on healthcare costs such as medical appliances, walking aids, hearing and visual aids and general medication. Assisted living, home nursing or frail care costs are also extremely high.
2. Hobbies
With more time on your hands, keeping yourself engaged, active and socially connected will be important, and it is possible that spending more time on your hobbies and social activities will cost more.
3. Vet Expenses
For many retirees, having companion animals is important to them and, thankfully, many modern retirement homes are making allowances for retirees to keep small pets such as cats and dogs. However, vet costs are high, and if you are not insured for these expenses, be sure to keep some savings for when your fur children need medical attention.
4. Levies and security
If you plan to live in a retirement village, townhouse complex or life rights village, you can expect to pay monthly levies which may be considerable depending on the utilities on offer.
With this in mind, it is important to do your upfront homework and research so that you know exactly what your levies will cover.
5. Charitable giving
Again, with more time on your hands, many retirees get more involved in their Church, charities and NGOs and you may be tempted to spend more on your charitable giving than your budget allows.
6. Grandchildren
Most grandparents long to spoil their grandchildren whether in the form of money, gifts or experiences. If you plan to assist financially with the education or extracurricular costs of your grandchildren, be sure to incorporate these intentions into your retirement budget.
Contact me for help with your Retirement Planning.
Francois Strydom
071 671 4301
francois@innovativeadvisory.co.za
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